Payday loans

[Woodsey]

The heat seems to have risen on these in the last day or two with the church sticking their oar in.

Yes they are expensive, but major financial organisations simply don't lend a few hundred quid for a month or whatever, are they such a bad thing? Better than illegal alternatives surely?

Arguments tend to focus on the large % interest being charged, in my view if I needed to take one of these I would view the 50 quid or whatever a fee rather than a %.

What you say? Are they taking the piss or not? 

[Tal]

1300% interest is only going to be paid by people who have no choice.

/debate IMO.

[Woodsey]

1300% interest is only going to be paid by people who have no choice.

/debate IMO.

But that is my point. No major financial organisation is going to give a loan for 200 quid for 3 weeks at 5 %. So what is your alternative suggestion?

Your /debate would be valid if it was possible.

I don't particularly care either way about this either way myself really. The media uproar has caught my eye that's all.

[Acidmouse]

Morally corrupt, legally allowed.

Feeding on poor peoples needs in this economic mess we find ourselves in, shameful and sad.

How much money do they suck out of people? seems alot based on how many sporting teams they want/do sponsor.

[Woodsey]

Morally corrupt, legally allowed.

Feeding on poor peoples needs in this economic mess we find ourselves in, shameful and sad.

So why haven't companies come in and been doing it for 25% or whatever if they were taking the piss so much? 25% seems pretty good to me....

[Acidmouse]

Morally corrupt, legally allowed.

Feeding on poor peoples needs in this economic mess we find ourselves in, shameful and sad.

So why haven't companies come in and been doing it for 25% or whatever if they were taking the piss so much?

They are restricted on what they can charge people on loans, but these "new fad" pay day loans are exempt from it, law needs change.

[Jon MW]

1300% interest is only going to be paid by people who have no choice.

/debate IMO.

But that is my point. No major financial organisation is going to give a loan for 200 quid for 3 weeks at 5 %. So what is your alternative suggestion?

Your /debate would be valid if it was possible.

I don't particularly care either way about this either way myself really. The media uproar has caught my eye that's all.

Major financial organisations do give 200 quid loans for a short period of time - overdrafts and credit cards.

And even when they are charged for, and even when they are 'relatively' expensive they're still nowhere near the payday loans figures.

Payday loan companies are basically loan sharks with a credit licence

[Tal]

If they get enough work in, they can charge 30% and make a tidy sum overall. No different to a casino's roulette table: small profit but guaranteed; the more they play, the more you win.

The best businesses spot a gap in a market and fill it. These loan companies only thrive because of the misfortune of others.

If these people could, they'd be using credit cards at 27% and paying off as much as they could afford over a longer period or paying the lot off interest free after they get paid.

But there is no option; no other recourse. They must pay fifty times more interest than the rest of society.

[Acidmouse]

I follow Paul Nicholson on twitter, the Darts prick.

He was going on about how he had morals and didn't think Eric Bristow was a good person for slagging him off. I felt like telling the ***** that being sponsored by a money lending company (like he is) makes him bottom of the moral list.

[Woodsey]

Like I said I have no view either way before you start jumping all over my arse.

But if they were so bad a more competitive way of lending would have appeared by now surely?

[Acidmouse]

Like I said I have no view either way before you start jumping all over my arse.

But if they were so bad a more competitive way of lending would have appeared by now surely?

It would be pretty easy to lend money at much lower rates, but it would take the average person who uses Wonga etc.. to stop and think for 5mins which is sadly asking alot.

[Skippy]

In Germany, many US states and Canada, there are usury laws that restrict the maximum interest rate paid on a loan. We should have the same laws here. I don't believe Wonga et al. can't survive charging 200% APR, rather than 1000+.

[Acidmouse]

In Germany, many US states and Canada, there are usury laws that restrict the maximum interest rate paid on a loan. We should have the same laws here. I don't believe Wonga et al. can't survive charging 200% APR, rather than 1000+.

Yeah same here in England, but for some reason Wonga type new money lenders are not under the law, seems unfair.

[redsimon]

Like I said I have no view either way before you start jumping all over my arse.

But if they were so bad a more competitive way of lending would have appeared by now surely?

Credit Unions try but don't have the financial muscle to compete with the likes of Wonga.

[Tal]

Sorry, Woodsey. Wasn't having a personal pop. No botty jumping intended.

You lit a blue touch paper, as you know